Overview of Incorporating in Mexico
Doing Business in Mexico
LLC vs Corporation
The two most common business types in Mexico are the Sociedad Anonima de Capital Variable (S.A. de C.V.) and the Sociedad de Responsabilidad Limitada (S. de R.L.). These are both corporate entities in Mexico for purposes of the law. However, the S. de R.L. is very similar to a partnership and in most cases will be treated like a partnership for tax purposes in countries like the United States and other jurisdictions. However, at the end of the day, from an operational standpoint within Mexico, and day-to-day operations, the difference among the two types of entities is minimal.
Basics of LLCs in Mexico
(Sociedad de Responsabilidad Limitada)
Sociedad de Responsabilidad Limitada (S. de R.L. or Limited Liability Company)
These are corporate entities consisting of two or more shareholders, whose shareholders enjoy limited liability. The S. de R.L. is similar in structure to the United States Limited Liability Company. In Mexico, it is treated as a corporate entity not a partnership. However, many foreign jurisdictions like the United States consider the S. de R.L. a partnership for tax purposes.
Basics of Corporations in Mexico
With MexInc you do not have to be a legal expert to do business in Mexico. We are the experts. So just sit back and run your business. But before making any decisions you should know the basics of corporations in Mexico. Mexico, just like in many other countries, has a regular run-of-the-mill company form. It is called an S.A. de C.V…. and is like an “.Inc” company you would find in the United States, for example. We’ll go ahead and spare you the legal jargon and cut to the chase.
Importing & Exporting in Mexico
Being incorporated in Mexico is necessary in order to import or export under one’s own name. The only alternative is to rely on a customs broker to import or export products for you under the broker’s company – which entails steep fees. The company must obtain an import permit This process can take as much as 15 business-days. However, in our experience, this timeframe can vary. In the past, it has taken as little as three business-days.
Human Resources in Mexico
Welcome to our roadmap for hiring employees in Mexico. This is meant to serve as a basic guide to those interested in contracting local employees in Mexico, and discussed aspects of compliance with local labor laws, initiating operations and general strategies concerning the labor market. Basic Requirements to Employ Mexican Workers. Clients have two primary options to contract local employees domestically. Form a legal entity in Mexico to directly hire the employees or use a Professional Employment Organizer (PEO) service to contract employees on their behalf for a fee as the local Employer of Record.
Accounting and Taxation in Mexico
Both S.A. de C.V.s (Corporations) and S. de R.L.s (Limited Liability Companies) are taxed as Corporations. In other jurisdictions, such as the United States, Limited Liability Companies may be taxed as either partnerships or corporations. Companies are required to file tax returns with Hacienda by May 31st of every year and also pay any tax liabilities they owe at the same time. Mexico charges stiff penalties with interest on any back-taxes. Be aware that new companies must file by December 31st of the year in which they begin operations.